Korea’s household lending by top 5 banks more than doubles ’18 on year

Outstanding loans lent out to individuals from Korea’s five major banks added more than 42.06 trillion won ($37.3 billion) last year to top 570 trillion won, more than doubling the increase of 27.38 trillion won in 2017.

According to data compiled by Maeil Business News on Thursday, total household debt balance of the country’s major banks - KB Kookmin, Shinhan, Woori, KEB Hana and NH NongHyup - reached 570.36 trillion won ($506 billion) as of the end of last year, up 42.06 trillion won from the previous year. The increase is 1.5 times larger from the previous year.

Mortgage-backed loans made up the lion’s share of 64 percent, or 27.32 trillion won, of total increase. Despite tougher loan regulations, mortgage loans stretched to 405.12 trillion won as of late 2018 amid overheated market in Seoul where housing prices on average jumped 10.4 percent last year.

Personal credit loans added 8.02 trillion won on year to 101.93 trillion won during the period as individuals took out loans on credit for housing financing.

Loans to finance Jeonse rent contract to live for two or more years after paying the lump sum deposit also rose 12 trillion won to 43.99 trillion won.